ECB likely to leave rates unchanged

The European Central Bank is expected to hold interest rates when it meets to allow time for new details on the health of the euro zone economy and for Spain to ask for aid.

If Spain asks other euro zone members to rescue its economy, that would clear the way for the ECB to start buying government bonds in a new programme aimed at reducing borrowing costs and solving the region’s debt crisis.

The ECB’s main refinancing rate is already at a record low of 0.75 per cent and analysts expect it to save any rate cut until the new bond programme has started.

via Business feed http://www.scmp.com/business/economy/article/1053561/ecb-likely-leave-rates-unchanged